CIty law firm SJ Berwin becomes first British practice to merge with
China-based rival and assume Beijing headquarters

One of London's 'silver circle' has become the first UK law firm to merge with a China-based rival, in a move that will be closely watched by the industry at a time when Anglo-Chinese relations are under the spotlight.

SJ Berwin on Friday completed its merger with Sino-Australian group King & Wood Mallesons, creating a 2,700-lawyer firm that spans Europe, the Middle East, China and Australia and will be headquartered in Beijing.

The tie-up, which will give SJ Berwin clients direct access to solicitors authorised to practice Chinese law, is the first of its kind. Typically, City law firms partner up with local practices to dispense advice on Chinese legislation, as Beijing only permits domestically-headquartered firms to advise on local law.

It will operate under a structure which means the constituent parts do not share profits, a requirement under Chinese law.

SJ Berwin's eastern shift ends a five-year quest which started as a search for a US tie-up. The 32-year-old law firm had held talks with Mayer Brown and Proskauer Rose prior to striking he deal with KWM.